How can individuals qualify for premium subsidies to lower their healthcare costs?

Individuals can qualify for premium subsidies to lower their healthcare costs based on their income levels relative to the federal poverty level (FPL). The Affordable Care Act established these subsidies to help make healthcare more affordable, particularly for individuals and families with lower to moderate incomes.

The amount of subsidy is determined by comparing an individual's or family’s expected annual income to the FPL, which is adjusted for household size. If the income is between 100% and 400% of the FPL, individuals may receive premium tax credits to reduce the out-of-pocket costs for premiums when purchasing insurance through the health insurance marketplace.

This income-based criterion ensures that subsidies are targeted effectively, helping those who need it most to afford health insurance, rather than being determined by arbitrary factors such as part-time employment, age, or specific insurance plans.